We enter into reinsurance agreements to limit our exposure to large losses and to enable us to underwrite policies with sufficient limits to meet policyholder needs. In a reinsurance transaction, an insurance company transfers, or cedes, part or all of its exposure to the reinsurer in exchange for all or a portion of the premiums.

We use extensive reinsurance arrangements, including quota share and excess of loss contracts, to manage our exposure under issued insurance contracts. Such reinsurance provides loss coverage subject to certain limits and may include sliding scale ceding commissions, premium caps, loss ratio limits and other features, which align our interests with those of our reinsurers. We consider these features when evaluating risk transfer and whether such contracts qualify as reinsurance or must be treated as deposits.

Flywheel Re is an unconsolidated reinsurance sidecar that provides multi-year collateralized quota share capacity backed by institutional investors. Flywheel Re was formed to facilitate the participation of institutional investors in the Accelerant Risk Exchange portfolio. The Flywheel Re reinsurance treaty was extended and upsized during the first quarter of 2026 through additional capital from new and existing institutional investors to support business assumed by Flywheel Re over a multi-year risk period scheduled to end in 2028.


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
Written premiums:
Direct	$	702.0	$	781.2	$	1,378.5	$	1,582.0
Assumed	40.6		130.1		208.0		203.3
Gross	742.6		911.3		1,586.5		1,785.3
Ceded	(568.4)		(892.5)		(1,261.6)		(1,694.1)
Net written premiums	$	174.2	$	18.8	$	324.9	$	91.2

Earned premiums:
Direct	$	633.4	$	701.2	$	1,293.1	$	1,343.3
Assumed	136.3		82.1		258.7		158.8
Gross	769.7		783.3		1,551.8		1,502.1
Ceded	(640.6)		(712.7)		(1,292.9)		(1,368.5)
Net earned premiums	$	129.1	$	70.6	$	258.9	$	133.6

Loss and LAE:
Direct	$	329.0	$	366.3	$	672.2	$	731.8
Assumed	71.2		29.1		135.3		46.4
Gross	400.2		395.4		807.5		778.2
Ceded	(328.5)		(344.1)		(654.0)		(681.7)
Net loss and LAE	$	71.7	$	51.3	$	153.5	$	96.5

Amounts recoverable from reinsurers on paid and unpaid losses and LAE are recognized in a manner consistent with the unpaid losses and LAE associated with the reinsurance and presented as reinsurance recoverables. The balances were as follows:


(in millions)	June 30, 2026		December 31, 2025
Reinsurance recoverables on unpaid losses and LAE	$	2,092.9	$	1,682.3
Other reinsurance recoverables:
Reinsurance recoverables on paid losses and LAE	763.7		512.7
Deposit assets (1)	61.4		69.5
Commutation consideration receivable	116.7		12.0
Total other reinsurance recoverables	941.8		594.2
Reinsurance recoverables	$	3,034.7	$	2,276.5

(1) Reduction of $8.1 million from December 31, 2025 to June 30, 2026 corresponds to the $8.4 million reduction in deposit asset attributed to recoveries, partially offset by $0.3 million of income amortization for the six months ended June 30, 2026.

Credit risk exists with reinsurance ceded to the extent that any reinsurer is unable to meet the obligation assumed under the reinsurance agreements. An allowance is established for amounts deemed uncollectible. We evaluate the financial condition of our reinsurers and monitor concentration of credit risk arising from our exposure to individual reinsurers. To further reduce credit exposure to reinsurance recoverables balances, we have received letters of credit from certain reinsurers that are not authorized as reinsurers under US state insurance regulations.

Of the total reinsurance recoverables on paid and unpaid losses and LAE outstanding as of June 30, 2026, 59% were with reinsurers having an A.M. Best rating of "A-" (excellent) or better, and we require reinsurance recoverables with reinsurers that have an A.M. Best rating below "A-" or are not rated by A.M. Best to be subject to collateral arrangements through a combination of letters of credit, funds withheld arrangements or trust agreements. We consider such collateral arrangements, credit ratings assigned to reinsurers by A.M. Best and other historical default rate information in estimating the credit valuation allowance for reinsurance recoverables. The credit valuation allowance was $0.7 million and $0.6 million as of June 30, 2026 and December 31, 2025.